Melexis FIRST LOOK - Lower guidance / inventory correction in automotive
3Q24 results were +/- OK but focus will be on outlook as Melexis sees more challenging end-market circumstances. It is not a surprise to us that Melexis revealed that recent discussions with customers indicate that they wish to reduce significantly their inventories by year-end, which Melexis has decided to assume. Melexis indicated that - while the inventory correction at its automotive customers is temporary and global car production is projected to grow in 2025 - visibility on next year is limited today.We and CSS will have to lower our FY24E forecasts as Melexis expects 4Q24 sales in the range of € 200 to 210m so for FY24, Melexis expects sales to be around € 935m to € 945m (recall this was previously around € 1bn) while we and CSS were at respectively € 1007m and € 992.2m. Melexis expects FY24E gross profit margin above 43% (previously above 44%, we and CSS were at 44.4%) and an EBIT margin above 24% (previously above 25%, we and CSS were at 25.8%). For FY24, Melexis expects Capex to be +/- € 60m.
Melexis designs, develops, tests and markets advanced integrated circuits primarily for the automotive industry. Co. sells its products to a wide customer base in the automotive, medical and industrial markets in Europe, Asia and North America. Co.'s main products are Hall effect ICs, Pressure and Acceleration Sensors, Sensor Interface ICs, Automotive Systems-on-a-Chip, Embedded Microcontrollers, Bus System Chips, Optical and Infrared sensors. In each case the products are primarily developed for automotive applications and designated lead customers with subsequent use in commercial and industrial applications.
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.